Ryerson Reports Fourth Quarter and Full-Year 2018 Results

CHICAGO, March 5, 2019 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the fourth quarter and full-year ended December 31, 2018.

Eddie Lehner, Ryerson's President and Chief Executive Officer said, "I want to thank our customers, my Ryerson and CS&W colleagues, and our suppliers for an outstanding year in all ways. We made the most of our opportunities and improved in every facet of our business while making important investments in profitable growth and positioning Ryerson to accelerate shareholder value accretion in the coming years. Our mission is creating great customer experiences that become an indispensable part of our customer's success across a network of intelligent industrial metal service centers. Ryerson made notable strides in advancing our mission and we are poised to do more and do it better as we move into 2019."

2018 Results

Revenues were $4.4 billion in 2018, up 31.0 percent from 2017, as average selling price per ton increased by 15.6 percent and tons shipped increased by 13.4 percent. On a same-store basis, revenues were $4.1 billion in 2018, up 20.7 percent from 2017 with average selling prices 16.0 percent higher and volumes 4.1 percent higher.

Gross margin was 17.2 percent in 2018, relatively unchanged compared to 17.3 percent in 2017. Included in cost of materials sold was net LIFO expense of $90.2 million in 2018 and $19.9 million in 2017. Gross margin, excluding LIFO and purchase accounting adjustments increased to 19.4 percent in 2018, compared with 17.9 percent in 2017. A reconciliation of gross margin, excluding LIFO and purchase accounting adjustments to gross margin is included below in this news release.

Warehousing, delivery, selling, general, and administrative expense increased by $133.3 million, or 27.7 percent in 2018, compared to the year-ago period. On a same-store basis, expenses increased by $67.0 million, or 13.9 percent, compared to 2017 due to higher variable expenses with increased shipments, variable incentive compensation increases, and higher delivery costs due to tight trucking conditions. Warehousing, delivery, selling, general, and administrative expenses as a percentage of sales declined to 13.9 percent in 2018, or 13.5 percent on a same-store basis, compared to 14.3 percent in 2017, demonstrating the company's ability to realize expense leverage at higher volumes.

Net income attributable to Ryerson Holding Corporation was $106.0 million, or $2.81 per diluted share, in 2018, compared to $17.1 million, or $0.46 per diluted share, in 2017. Included in 2018 results is a gain on bargain purchase related to the acquisition of CS&W of $70.0 million. Net income attributable to Ryerson Holding Corporation adjusted for one-time items was $40.4 million, or $1.07 per diluted share in 2018 compared to $13.8 million, or $0.37 per diluted share in 2017.

Adjusted EBITDA, excluding LIFO increased 67.3 percent to $308.0 million in 2018, compared to $184.1 million in 2017. Adjusted EBITDA, excluding LIFO as a percentage of sales increased to 7.0 percent in 2018 compared to 5.5 percent in the prior year. CS&W contributed $14.6 million to 2018 Adjusted EBITDA, excluding LIFO since its acquisition in the second half of 2018. Reconciliations of Adjusted EBITDA, excluding LIFO, adjusted net income attributable to Ryerson Holding Corporation, and diluted adjusted earnings per share to net income attributable to Ryerson Holding Corporation, are included below in this news release.

Working Capital and Liquidity Management

In 2018, Ryerson's inventory balance stood at 73 days of supply, or 71 days on a same-store basis, consistent with 71 days in the year-ago period. Ryerson's working capital management mitigated the impact of commodity volatility on our results by maintaining inventory levels between 70 and 75 days, significantly lower than the average for our peer group, while preserving working capital investment optionality.

Cash provided by operating activities was $57.4 million in 2018 compared to cash used in operating activities of $2.5 million in 2017, driven primarily by strong net income generation and exceptional working capital management in a year characterized by shifting supply chains and value chain bottlenecks. Ryerson generated $119.8 million in cash from operating activities during the fourth quarter of 2018 compared to $90.8 million of cash generated from operating activities in the fourth quarter of 2017.

As of December 31, 2018, borrowings were $536 million on our primary revolving credit facility with additional availability of $392 million. Including cash, marketable securities, and availability from foreign sources, Ryerson's total liquidity was $441 million compared to $338 million in 2017. Ryerson repurchased $50.5 million of our 11 percent Senior Secured Notes in December 2018 and an additional $11.6 million in January 2019, reducing annualized cash interest payments by approximately $4.5 million. Chief Financial Officer Erich Schnaufer said, "Ryerson used its ample liquidity and repurchased a portion of our outstanding Senior Secured Notes to reduce our cash interest payments while advantageously realizing opportunities afforded by intense bond market selling impulses that started late in the fourth quarter of 2018 and continued early into the first quarter of 2019. We are committed to reducing our long-term leverage while maintaining sufficient liquidity to promote growth and manage through any market conditions."

Fourth Quarter 2018 Results

Revenues were $1,160.0 million for the fourth quarter of 2018, up 43.1 percent from the year-ago period due to increases in tons shipped of 22.8 percent and average selling price per ton of 16.5 percent. On a same-store basis, revenues increased 22.2 percent to $990.7 million in the fourth quarter of 2018 compared to the year-ago period with average selling prices 18.7 percent higher and tons shipped 3.0 percent higher.

Gross margin was 17.2 percent for the fourth quarter of 2018, an increase of 50 basis points compared to the third quarter of 2018 and an increase of 40 basis points compared to the fourth quarter of 2017. Included in cost of materials sold was LIFO expense of $0.9 million for the fourth quarter of 2018, $32.1 million for the third quarter of 2018, and $8.1 million for the fourth quarter of 2017. Gross Margin, excluding LIFO and purchase accounting adjustments decreased to 17.5 percent in the fourth quarter of 2018, compared with 19.6 percent in the third quarter of 2018 and 17.8 percent in the fourth quarter of 2017. Gross Margin, excluding LIFO and purchase accounting adjustments compressed sequentially due to rising average inventory costs and flat average selling prices experienced in the fourth quarter of 2018. A reconciliation of gross margin to gross margin, excluding LIFO and purchase accounting adjustments is included below in this news release.

Warehousing, delivery, selling, general, and administrative expenses were $171.3 million for the fourth quarter of 2018, or $139.0 million on a same-store basis, compared to $121.7 million in the year-ago period. Warehousing, delivery, selling, general, and administrative expenses as a percentage of sales declined to 14.8 percent in the fourth quarter of 2018, or 14.0 percent on a same-store basis, compared to 15.0 percent in the year-ago period, demonstrating Ryerson's ability to realize expense leverage in an expansionary environment while integrating a major acquisition.

Net income attributable to Ryerson Holding Corporation was $0.6 million, or $0.01 per diluted share, in the fourth quarter of 2018, compared to zero in the fourth quarter of 2017. Net income attributable to Ryerson Holding Corporation adjusted for one-time items was $6.2 million, or $0.16 per diluted share, in the fourth quarter of 2018 compared to a net loss of $3.4 million, or a loss of $0.09 per diluted share in the fourth quarter of 2017. Ryerson achieved Adjusted EBITDA, excluding LIFO of $50.5 million in the fourth quarter of 2018, an increase of $9.9 million compared to the same quarter last year. Reconciliations of Adjusted EBITDA, excluding LIFO, adjusted net income attributable to Ryerson Holding Corporation, and diluted adjusted earnings per share to net income attributable to Ryerson Holding Corporation are included below in this news release.

Central Steel & Wire Results & Integration

Central Steel & Wire continued to enhance Ryerson's commercial, processing, and operational strengths during the fourth quarter. CS&W generated fourth quarter revenues of $169.3 million with average selling prices 4.0 percent lower and tons shipped only 1.1 percent lower sequentially with 2 fewer shipping days. Adjusted EBITDA, excluding LIFO was $5.7 million in the fourth quarter, or $14.6 million in the second half of 2018. As part of Ryerson's post-close optimization plan, CS&W has realized approximately $13 million of expense savings on an annualized basis as of the end of 2018. Further, Ryerson realized approximately $10 million of cumulative proceeds since the acquisition from real estate sales for operations that were consolidated into existing facilities. CS&W's improved working capital management increased free cash flows by approximately $40 million in the second half of 2018. Beyond the improvements experienced directly at CS&W, Ryerson's service centers are benefiting from complimentary commercial relationships as well as complimentary inventory and fixed assets across the combined Ryerson and CS&W footprint. CS&W's financial performance is ahead of schedule so far, as we continue to drive toward our three-year mid-cycle objective of $600 million in revenue and $50 million in Adjusted EBITDA, excluding LIFO.

Outlook Commentary

Customer sentiment continues to be positive as we moved through the early part of 2019 supported by stronger year-over-year shipments out of the gate despite some severe winter weather across the network in late January through mid-February. We believe average selling prices remain well supported year-over-year and gross margins have begun to expand gradually after bottoming in mid-February. We expect to see continued strength in most of our end-markets while commodity pricing across carbon, aluminum, and nickel has stabilized or moved higher compared to levels transacted in the fourth quarter of 2018.


       
              Same-store Key Financial Metrics Reconciliation




                                            
            Central Steel        
            Central Steel             
      Ryerson            
       Ryerson

                                               
            & Wire               
            & Wire                
      Same Store          
       Holding

                                               
            Company              
            Company                                    
       Corporation

                                                                                                                                                  ---

        (Dollars in
         millions,                           
            Six Months        Six Months Ended December 31, 2018

        tons in thousands)                   
            Ended June

                                                      
            30, 2018

    ---                                                                                                ---

        Tons Shipped                                                218                                 187                1,012                   1,199

    ---


       Net Sales                                                $362.2                              $347.5             $2,062.5                $2,410.0

    ---

        Gross margin,
         excluding LIFO
         expense and
         purchase accounting
         adjustments                                              21.9%                              21.8%               18.0%                  18.6%

    ---

        Warehousing,
         delivery, selling,
         general, and
         administrative
         expenses                                                 $68.9                               $66.3               $279.0                  $345.3

    ---

        Expense % of sales                                        19.0%                              19.1%               13.5%                  14.3%

    ---

        Adjusted EBITDA,
         excluding LIFO                                           $12.3                               $14.6               $124.6                  $139.2

    ---

        Adjusted EBITDA,
         excluding LIFO % of
         sales                                                     3.4%                               4.2%                6.0%                   5.8%

    ---


       
                Fourth Quarter 2018 Business Metrics




                                   
              Fourth       
      Third       
      Fourth        
       Sequential         
       Year-Over-Year

                                  
              Quarter      
      Quarter     
      Quarter      
       Quarter Change         
         Change

                                                   2018             2018            2017

                                                                                                                                     ---

        Tons shipped
         (In thousands)                             577              622             470                    -7.2%                     22.8%

    ---



        Average selling
         price/ton                               $2,010           $2,010          $1,725              
          __-_                     16.5%

    ---

        Average cost/
         ton                                      1,664            1,675           1,435                    -0.7%                     16.0%

    ---

        Average cost/
         ton, excluding
         LIFO                                     1,662            1,623           1,418                     2.4%                     17.2%

    ---


       
                Fourth Quarter 2018 Major Product Metrics




                                                             Tons Shipped (Tons in thousands)              Average Selling Price per
                                                                                              
         Ton Shipped

                                                                                                   ---

                                        
              Fourth        
              Third                
        Fourth                      
        Sequential         
          Year-       
        Sequential        
      Year-Over-

                                       
              Quarter       
              Quarter              
        Quarter                       
        Quarter           
          Over-        
        Quarter         
      Year Change

                                                       2018                      2018                                    2017        
          Change          
           Year        
          Change

                                                                                                                                                        
         Change

                                                                                                                                                                                                                  ---

        Carbon steel                                    446                       479                                     355                     -6.9%                25.6%                  1.3%                 22.4%

    ---


       Aluminum                                         54                        58                                      49                     -6.9%                10.2%                 -0.2%                 22.0%

    ---

        Stainless steel                                  73                        79                                      65                     -7.6%                12.3%                 -3.5%                 14.7%

    ---

                                     Net Sales (Dollars in millions)



                         
      Fourth       
              Third         
       Fourth     
        Sequential        
      Year-Over-

                        
      Quarter      
              Quarter       
       Quarter      
        Quarter         
      Year Change

                                2018                     2018               2017    
          Change



        Carbon steel             626                      664                407                 -5.7%                53.8%

    ---


       Aluminum                 250                      268                186                 -6.7%                34.4%

    ---

        Stainless steel          264                      296                205                -10.8%                28.8%

    ---


       
                Twelve Months Ended December 31 Business Metrics

    ---

                                                                      
      Twelve Months Ended        Twelve Months Ended  
       Year-Over-Year

                                                                       
      December 31, 2018          December 31, 2017     
         Change

                                                                                                                                            ---


       Tons shipped (In thousands)                                                           2,268                2,000                    13.4%

    ---




       Average selling price/ton                                                            $1,944               $1,682                    15.6%

    ---


       Average cost/ton                                                                      1,610                1,391                    15.7%

    ---


       Average cost/ton, excluding LIFO                                                      1,570                1,381                    13.7%

    ---


       
                Twelve Months Ended December 31 
          Major Product Metrics

    ---

                                                       Tons Shipped (Tons in thousands)             Average Selling
                                                                                                       Price per Ton
                                                                                                   Shipped



                                                  
        Twelve Months Ended              
      Twelve Months Ended               
       Year-        Year-Over-Year

                                                   
        December 31, 2018                
      December 31, 2017              
       Over-Year          Change

                                                                                                                            
       Change



        Carbon steel                                                              1,729                              1,505              14.9%            17.4%

    ---


       Aluminum                                                                    222                                204               8.8%            19.8%

    ---

        Stainless steel                                                             302                                283               6.7%            15.8%

    ---

                        
     
        Sales (Dollars in millions)



                          
      Twelve Months Ended            
      Twelve Months Ended       
       Year-Over-Year

                           
      December 31, 2018              
      December 31, 2017          
         Change



        Carbon steel                                  2,287                        1,696                    34.8%

    ---


       Aluminum                                        980                          752                    30.3%

    ---

        Stainless steel                               1,070                          866                    23.6%

    ---

Earnings Call Information

Ryerson will host a conference call to discuss its fourth quarter 2018 results Wednesday, March 6, 2019 at 10 a.m. Eastern Time. Participants may access the conference call by dialing 833-241-7253 (Domestic) or 647-689-4217 (International) and using conference ID 7744196. The live online broadcast will be available on the Company's investor relations website, ir.ryerson.com. A replay will be available at the same website for 90 days.

About Ryerson

Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China. Founded in 1842, Ryerson has around 4,600 employees in approximately 100 locations. Visit Ryerson at www.ryerson.com.

Safe Harbor Provision

Certain statements made in this press release and other written or oral statements made by or on behalf of the Company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates, or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as "objectives," "goals," "preliminary," "range," "believes," "expects," "may," "estimates," "will," "should," "plans," or "anticipates," or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. The Company cautions that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact the metals distribution industry and our business are: the cyclicality of our business; the highly competitive, volatile, and fragmented market in which we operate; fluctuating metal prices; our substantial indebtedness and the covenants in instruments governing such indebtedness; the integration of acquired operations; regulatory and other operational risks associated with our operations located inside and outside of the United States; work stoppages; obligations under certain employee retirement benefit plans; the ownership of a majority of our equity securities by a single investor group; currency fluctuations; and consolidation in the metals producer industry. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth above and those set forth under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2018, and in our other filings with the Securities and Exchange Commission. Moreover, we caution against placing undue reliance on these statements, which speak only as of the date they were made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise.

                                                                       
              RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES




                                                                          
              Selected Income and Cash Flow Data - Unaudited


                                                               
              (Dollars and Shares in Millions, except Per Share and Per Ton Data)






                                                                                                                      
              Third                        
     Year Ended


                                                            Fourth Quarter                    
              Quarter                          
       December 31,



                                                                          2018                                2017                                       2018                    2018               2017






     NET SALES                                                       $1,160.0                              $810.6                                   $1,250.0                $4,408.4           $3,364.7




                                                        Cost of materials sold        960.3                                        674.1                             1,041.8            3,650.3             2,782.2





                                                        Gross profit                  199.7                                        136.5                               208.2              758.1               582.5




                                                        Warehousing, delivery,
                                                         selling, general, and
                                                         administrative (1)           171.3                                        121.7                               174.0              614.7               481.4


                                                        Restructuring and
                                                         other charges                  1.5                                                                             2.7                4.2                   -






     OPERATING PROFIT                                                    26.9                                14.8                                       31.5                   139.2              101.1




                                                        Other income and
                                                         (expense), net (1)
                                                         (2)                          (2.2)                                         2.1                                74.2               76.7                 6.6


                                                        Interest and other
                                                         expense on debt             (26.0)                                      (23.2)                             (26.0)            (99.2)             (91.0)






     INCOME (LOSS) BEFORE INCOME TAXES                                  (1.3)                              (6.3)                                      79.7                   116.7               16.7




                                                        Provision (benefit)
                                                         for income taxes             (2.0)                                       (6.6)                                2.0               10.3               (1.3)






     NET INCOME                                                           0.7                                 0.3                                       77.7                   106.4               18.0




      Less: Net income attributable to noncontrolling
       interest                                                            0.1                                 0.3                                        0.2                     0.4                0.9





      NET INCOME ATTRIBUTABLE TO RYERSON HOLDING
       CORPORATION                                                        $0.6                 
              $      -                                     $77.5                  $106.0              $17.1






     EARNINGS PER SHARE




                                                      
     Basic                         $0.01                          
              $      -                              $2.08              $2.84               $0.46





                                                      
     Diluted                       $0.01                          
              $      -                              $2.06              $2.81               $0.46






     Shares outstanding - basic                                          37.4                                37.2                                       37.4                    37.3               37.2



     Shares outstanding - diluted                                        37.7                                37.2                                       37.7                    37.7               37.3





     Supplemental Data :




                                                        Tons shipped  (000)             577                                          470                                 622              2,268               2,000


                                                        Shipping days                    61                                           60                                  63                252                 251




                                                        Average selling price/
                                                         ton                         $2,010                                       $1,725                              $2,010             $1,944              $1,682


                                                        Gross profit/ton                346                                          290                                 335                334                 291


                                                        Operating profit/ton             47                                           31                                  51                 61                  50




                                                        LIFO expense, net per
                                                         ton                              2                                           17                                  52                 40                  10




                                                        LIFO expense, net              $0.9                                         $8.1                               $32.1              $90.2               $19.9




                                                        Depreciation and
                                                         amortization expense          15.7                                         13.0                                14.1               52.9                47.1




                                                        Cash flow provided by
                                                         (used in) operating
                                                         activities                   119.8                                         90.8                              (44.5)              57.4               (2.5)


                                                        Capital expenditures          (8.7)                                       (9.3)                              (8.3)            (38.4)             (25.1)




     (1) As a result of adopting Accounting
            Standards Update 2017-07,
            "Compensation -Retirement Benefits:
            Improving the Presentation of Net
            Periodic Pension Cost and Net
            Periodic Post Retirement Benefit
            Cost," we have reclassified a $2.4
            million benefit in the fourth
            quarter of 2017 and a $8.9 million
            benefit in the year ended December
            31, 2017 from Warehousing, delivery,
            selling, general, and administrative
            expense to Other income and
            (expense), net.





     (2) The fourth quarter of 2018 includes a
            $3.2 million reduction to the gain
            on bargain purchase, the third
            quarter of 2018 includes a $73.2
            million gain on bargain purchase,
            and the year 2018 includes a $70.0
            million gain on bargain purchase
            related to our Central Steel & Wire
            acquisition.




           See Schedule 1 for Condensed
            Consolidated Balance Sheets


           See Schedule 2 for EBITDA, Adjusted
            EBITDA and gross profit
            reconciliations


           See Schedule 3 for EPS reconciliation


                        See Schedule 4 for Free Cash Flow
                         reconciliation


                        See Schedule 5 for Adjusted EPS
                         versus Prior Estimate

                                                                                                                               Schedule 1




                                                           
          RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES




                                                                
            Condensed Consolidated Balance Sheets


                                                                   
              (In millions, except shares)




                                                                                                                  
        December 31,                
     December 31,


                                                                                                                                     2018                           2017




     Assets


                             Current assets:


                             Cash and cash
                              equivalents                                                           $23.2                                    $77.4


                             Restricted cash                                                          1.1                                      1.1


                                          Receivables, less
                                           provisions of
                                           $2.5 in 2018 and
                                           $4.9 in 2017                                             521.0                                    376.3


                             Inventories                                                            806.3                                    616.5


                             Prepaid expenses
                              and other
                              current assets                                                         61.5                                     32.6





                                                               
            Total current assets                                      1,413.1                        1,103.9




                                          Property, plant, and
                                           equipment, at cost                                       838.0                                    742.7


                             Less: accumulated
                              depreciation                                                          349.0                                    319.8



                                          Property, plant,
                                           and equipment,
                                           net                                                      489.0                                    422.9




                             Deferred income taxes                                                                                           17.9


                             Other intangible
                              assets                                                                 58.1                                     46.9


                  
              Goodwill                                                               120.3                                    115.3


                             Deferred charges and
                              other assets                                                            5.8                                      5.0





                                                               
            Total assets                                             $2,086.3                       $1,711.9








     Liabilities


                             Current liabilities:


                             Accounts payable                                                      $390.2                                   $275.0


                                          Salaries, wages,
                                           and commissions                                           66.6                                     40.3


                             Other accrued
                              liabilities                                                            77.0                                     58.4


                             Short-term debt                                                         27.3                                     21.3


                             Current portion
                              of deferred
                              employee
                              benefits                                                                7.9                                      7.7





                                                                        Total current liabilities                                   569.0                          402.7




                             Long-term debt                                                       1,126.0                                  1,024.4


                             Deferred employee
                              benefits                                                              258.4                                    243.5


                             Other noncurrent
                              liabilities                                                            57.0                                     48.7





                                                               
            Total liabilities                                         2,010.4                        1,719.3





     Commitments and contingencies




      Equity


                             Ryerson Holding
                              Corporation
                              stockholders' equity
                              (deficit):


                            Preferred stock,
                              $0.01 par value;
                              7,000,000 shares
                              authorized and
                              no shares issued
                              at 2018 and 2017


                            Common stock,
                              $0.01 par value;
                              100,000,000
                              shares
                              authorized;
                              37,656,505 and
                              37,421,081
                              shares issued at
                              2018 and 2017,
                              respectively                                                            0.4                                      0.4


                             Capital in excess
                              of par value                                                          381.0                                    377.6


                             Retained earnings
                              (accumulated
                              deficit)                                                               14.2                                   (95.1)


                            Treasury stock,
                              at cost -Common
                              stock of 212,500
                              shares in 2018
                              and 2017                                                              (6.6)                                   (6.6)


                             Accumulated other
                              comprehensive
                              loss                                                                (315.8)                                 (286.3)





                                                                        Total Ryerson Holding Corporation
                                                                         Stockholders' Equity (Deficit)                              73.2                         (10.0)




                             Noncontrolling
                              interest                                                                2.7                                      2.6





                                                               
            Total Equity (Deficit)                                       75.9                          (7.4)





                                                                        Total Liabilities and
                                                                         Stockholders' Equity                                    $2,086.3                       $1,711.9


                                                                                                                                                  Schedule 2




                                                    
              RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES


                                
              
            Reconciliations of Net Income Attributable to Ryerson Holding Corporation to EBITDA and
                                                              Gross profit to Gross profit excluding LIFO


                                                                   
              (Dollars in millions)




                                                                                                 
              Third                        
      Year Ended


                                                
             Fourth Quarter                              
              Quarter                                     
        December 31,

                                                                                                                                                               ---

                                                      2018                                 2017                              2018                                  2018             2017

                                                                                                                                                                                 ---



                   Net income attributable to
                    Ryerson Holding Corporation       $0.6                  
              $      -                            $77.5                                $106.0            $17.1


      Interest and other expense on
       debt                                           26.0                                 23.2                              26.0                                  99.2             91.0


      Provision (benefit) for income
       taxes                                         (2.0)                               (6.6)                              2.0                                  10.3            (1.3)


      Depreciation and amortization
       expense                                        15.7                                 13.0                              14.1                                  52.9             47.1

                                                                                                                                                                                 ---


     EBITDA                                         $40.3                                $29.6                            $119.6                                $268.4           $153.9


      Gain on bargain purchase                         3.2                                                                (73.2)                               (70.0)               -



     Reorganization                                   1.8                                  1.3                               3.0                                   6.1              4.1


      Foreign currency transaction
       (gains) losses                                (1.6)                                 0.2                               0.5                                 (2.5)             2.0


      Loss on retirement of debt                       1.7                                                                                                        1.7                -


      Impairment charges on assets                                                                                                                                               0.2


      Purchase consideration and
       other transaction costs                         3.8                                  1.3                               6.7                                  14.3              3.9



     Other adjustments                                0.4                                  0.1                                                                  (0.2)             0.1




     Adjusted EBITDA                                $49.6                                $32.5                             $56.6                                $217.8           $164.2






     Adjusted EBITDA                                $49.6                                $32.5                             $56.6                                $217.8           $164.2



     LIFO expense, net                                0.9                                  8.1                              32.1                                  90.2             19.9

                                                                                                                                                                                 ---

      Adjusted EBITDA, excluding
       LIFO expense, net                             $50.5                                $40.6                             $88.7                                $308.0           $184.1






     Net sales                                   $1,160.0                               $810.6                          $1,250.0                              $4,408.4         $3,364.7




      Adjusted EBITDA, excluding
       LIFO expense, net, as a
       percentage of net sales                        4.4%                                5.0%                             7.1%                                 7.0%            5.5%

                                                                                                                                                                                 ===




     Gross profit                                  $199.7                               $136.5                            $208.2                                $758.1           $582.5





     Gross margin                                   17.2%                               16.8%                            16.7%                                17.2%           17.3%

                                                                                                                                                                                 ===




     Gross profit                                  $199.7                               $136.5                            $208.2                                $758.1           $582.5



     LIFO expense, net                                0.9                                  8.1                              32.1                                  90.2             19.9

                                                                                                                                                                                 ---

      Gross profit, excluding LIFO
       expense, net                                 $200.6                               $144.6                            $240.3                                $848.3           $602.4





      Gross margin, excluding LIFO
       expense, net                                  17.3%                               17.8%                            19.2%                                19.2%           17.9%

                                                                                                                                                                                 ===




     Gross profit                                  $199.7                               $136.5                            $208.2                                $758.1           $582.5



     LIFO expense, net                                0.9                                  8.1                              32.1                                  90.2             19.9


      Purchase accounting
       adjustments                                     2.2                                                                   4.7                                   6.9                -





      Gross profit, excluding LIFO
       expense, net, and purchase
       accounting adjustments                       $202.8                               $144.6                            $245.0                                $855.2           $602.4





      Gross margin, excluding LIFO
       expense, net, and purchase
       accounting adjustments                        17.5%                               17.8%                            19.6%                                19.4%           17.9%

                                                                                                                                                                                 ===



              Note:                EBITDA
                                     represents
                                     net income
                                     before
                                     interest and
                                     other expense
                                     on debt,
                                     provision
                                     (benefit) for
                                     income taxes,
                                     depreciation,
                                     and
                                     amortization.
                                     Adjusted
                                     EBITDA gives
                                     further
                                     effect to,
                                     among other
                                     things,
                                     impairment
                                     charges on
                                     assets,
                                     reorganization
                                     expenses,
                                     gain on
                                     bargain
                                     purchase, and
                                     foreign
                                     currency
                                     transaction
                                     gains and
                                     losses. We
                                     believe that
                                     the
                                     presentation
                                     of EBITDA,
                                     Adjusted
                                     EBITDA, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, provides
                                     useful
                                     information
                                     to investors
                                     regarding our
                                     operational
                                     performance
                                     because they
                                     enhance an
                                     investor's
                                     overall
                                     understanding
                                     of our core
                                     financial
                                     performance
                                     and provide a
                                     basis of
                                     comparison of
                                     results
                                     between
                                     current,
                                     past, and
                                     future
                                     periods. We
                                     also disclose
                                     the metric
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, to
                                     provide a
                                     means of
                                     comparison
                                     amongst our
                                     competitors
                                     who may not
                                     use the same
                                     basis of
                                     accounting
                                     for
                                     inventories.
                                     EBITDA,
                                     Adjusted
                                     EBITDA, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, are
                                     three of the
                                     primary
                                     metrics
                                     management
                                     uses for
                                     planning and
                                     forecasting
                                     in future
                                     periods,
                                     including
                                     trending and
                                     analyzing the
                                     core
                                     operating
                                     performance
                                     of our
                                     business
                                     without the
                                     effect of
                                     U.S.
                                     generally
                                     accepted
                                     accounting
                                     principles,
                                     or GAAP,
                                     expenses,
                                     revenues, and
                                     gains
                                     (losses) that
                                     are unrelated
                                     to the day to
                                     day
                                     performance
                                     of our
                                     business. We
                                     also
                                     establish
                                     compensation
                                     programs for
                                     our executive
                                     management
                                     and regional
                                     employees
                                     that are
                                     based upon
                                     the
                                     achievement
                                     of pre-
                                     established
                                     EBITDA,
                                     Adjusted
                                     EBITDA, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, targets.
                                     We also use
                                     EBITDA,
                                     Adjusted
                                     EBITDA, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, to
                                     benchmark our
                                     operating
                                     performance
                                     to that of
                                     our
                                     competitors.
                                     EBITDA,
                                     Adjusted
                                     EBITDA, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income), net
                                     do not
                                     represent,
                                     and should
                                     not be used
                                     as a
                                     substitute
                                     for, net
                                     income or
                                     cash flows
                                     from
                                     operations as
                                     determined in
                                     accordance
                                     with
                                     generally
                                     accepted
                                     accounting
                                     principles,
                                     and neither
                                     EBITDA,
                                     Adjusted
                                     EBITDA, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, is
                                     necessarily
                                     an indication
                                     of whether
                                     cash flow
                                     will be
                                     sufficient to
                                     fund our cash
                                     requirements.
                                     This release
                                     also presents
                                     gross margin,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, which is
                                     calculated as
                                     gross profit
                                     plus LIFO
                                     expense (or
                                     minus LIFO
                                     income), net,
                                     divided by
                                     net sales,
                                     and gross
                                     margin,
                                     excluding
                                     LIFO expense
                                     (income), net
                                     and purchase
                                     accounting
                                     adjustments,
                                     which is
                                     calculated as
                                     gross profit
                                     plus LIFO
                                     expense (or
                                     minus LIFO
                                     income) and
                                     purchase
                                     accounting
                                     adjustments
                                     divided by
                                     net sales. We
                                     have excluded
                                     LIFO expense
                                     (income), net
                                     and purchase
                                     accounting
                                     adjustments
                                     from gross
                                     margin and
                                     Adjusted
                                     EBITDA as a
                                     percentage of
                                     net sales
                                     metrics in
                                     order to
                                     provide a
                                     means of
                                     comparison
                                     amongst our
                                     competitors
                                     who may not
                                     use the same
                                     basis of
                                     accounting
                                     for
                                     inventories
                                     as we do as
                                     well as
                                     remove the
                                     effect of
                                     non-cash
                                     purchase
                                     accounting
                                     adjustments.
                                     Our
                                     definitions
                                     of EBITDA,
                                     Adjusted
                                     EBITDA,
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, gross
                                     margin,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, gross
                                     margin
                                     excluding
                                     LIFO expense
                                     (income), net
                                     and purchase
                                     accounting
                                     adjustments,
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, as a
                                     percentage of
                                     sales, and
                                     Adjusted
                                     EBITDA,
                                     excluding
                                     LIFO expense
                                     (income),
                                     net, and
                                     purchase
                                     accounting
                                     adjustments
                                     as a
                                     percentage of
                                     sales may
                                     differ from
                                     that of other
                                     companies.

                                                                                                                                     Schedule 3


                                                 
             RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES


                                           
             
                Reconciliation of Net Income and Earnings per Share


                                         
             to Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share


                                                
             (Dollars and Shares in Millions, Except Per Share Data)




                                                                                               
              Third              
     Year Ended


                                                              Fourth Quarter                            
              Quarter                               December 31,

                                                                                                                                                ---

                                                       2018                              2017                           2018                        2018                   2017

                                                                                                                                                                        ---



     Net income attributable to
      Ryerson Holding Corporation                      $0.6                
              $     -                         $77.5                      $106.0                  $17.1




     Gain on bargain purchase                           3.2                                                          (73.2)                     (70.0)                     -


     Restructuring and other
      charges                                           1.5                                                             2.7                         4.2                      -


     Impairment charges on assets                                                                                                                                       0.2


     Loss on retirement of debt                         1.7                                                                                        1.7                      -


     Benefit from income tax reform                                                    (3.4)                                                                          (3.4)


     Benefit for income taxes                         (0.8)                                                          (0.7)                      (1.5)                 (0.1)



     Adjusted Net income (loss)
      attributable to Ryerson
      Holding Corporation                              $6.2                            $(3.4)                          $6.3                       $40.4                  $13.8





     Diluted Adjusted Earnings
      (loss) per share                                $0.16                           $(0.09)                         $0.17                       $1.07                  $0.37









     Adjusted Net income (loss)
      attributable to Ryerson
      Holding Corporation                              $6.2                            $(3.4)                          $6.3                       $40.4                  $13.8


     LIFO Expense, Net adjusted for
      income tax effect                                 0.7                               5.0                           23.8                        66.7                   12.2

                                                                                                                                                                        ---

                  Adjusted Net income
                   attributable to Ryerson
                   Holding Corporation excluding
                   LIFO expense, net                   $6.9                              $1.6                          $30.1                      $107.1                  $26.0





                  Diluted Adjusted Earnings per
                   share excluding LIFO expense,
                   net                                $0.18                             $0.04                          $0.80                       $2.84                  $0.70









     Shares outstanding -diluted                       37.7                              37.2                           37.7                        37.7                   37.3

                                                                                                                                                                        ===



              Note:                Adjusted Net
                                     income and
                                     Adjusted
                                     Earnings per
                                     share is
                                     presented to
                                     provide a
                                     means of
                                     comparison
                                     with periods
                                     that do not
                                     include
                                     similar
                                     adjustments.

                                                                                         Schedule 4


                         
              RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES


                          
              Cash Flow from Operations to Free Cash Flow Yield


                                        
              (Dollars in Millions)






                                                           
              Third                      
          Year Ended


                                Fourth Quarter                 
              Quarter                   
            December 31,

                                                                                                       ---

                           2018                       2017                       2018                      2018                 2017

                                                                                                                             ---



     Net cash provided
      by (used in)
      operating
      activities         $119.8                      $90.8                    $(44.5)                    $57.4               $(2.5)


     Capital
      expenditures        (8.7)                     (9.3)                     (8.3)                   (38.4)              (25.1)


     Proceeds from sales
      of property, plant
      and equipment         5.2                        0.1                        0.3                       5.9                  3.8

                                                                                                                             ---

     Free Cash Flow      $116.3                      $81.6                    $(52.5)                    $24.9              $(23.8)





     Market
      Capitalization     $237.4                     $387.0                     $423.1                    $237.4               $387.0




     Free Cash Flow
      Yield               49.0%                     21.1%                    -12.4%                    10.5%               -6.1%

                                                                                                                             ===



              Note:                Market
                                     capitalization
                                     is
                                     calculated
                                     using
                                     December 31,
                                     2018,
                                     September
                                     30, 2018,
                                     and December
                                     31, 2017
                                     stock prices
                                     and shares
                                     outstanding.

                                                                                                                  
        
               Schedule 5


                                           
              RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES


                                      
              Impact of LIFO Expense (Income) Estimate Versus Actual Results


                                            
              Adjusted Net Income and Adjusted Earnings Per Share


                                                         
              (Dollars in Millions)






                                                                                                                
       Fourth Quarter



                                                                                                                                         2018






     Adjusted Net income attributable to Ryerson Holding Corporation (see Schedule 3)                                                   $6.2





     Less: Estimated vs. Actual LIFO Expense (Income) per third quarter 2018 earnings call                                            (10.9)



     Less: Provision for income taxes on LIFO Income                                                                                     2.8



      Adjusted Net income attributable to Ryerson Holding Corporation excluding LIFO income based on third
       quarter LIFO income estimate                                                                                                     $14.3





      Diluted Adjusted Earnings per share excluding LIFO income excluding impact of third quarter estimated
       vs. actual LIFO expense (income)                                                                                                 $0.38






     Shares outstanding - diluted                                                                                                       37.7





              Note:                Adjusted Net
                                     income
                                     attributable
                                     to Ryerson
                                     Holding
                                     Corporation
                                     and adjusted
                                     earnings per
                                     share
                                     excluding
                                     LIFO income
                                     based on
                                     third quarter
                                     LIFO income
                                     estimate is
                                     presented to
                                     provide a
                                     means of
                                     comparison
                                     between
                                     Ryerson's
                                     earnings in
                                     the fourth
                                     quarter of
                                     2018 and
                                     management's
                                     estimate of
                                     LIFO income
                                     as of the
                                     third quarter
                                     2018 as
                                     reported on
                                     our earnings
                                     call and
                                     actual
                                     earnings
                                     during the
                                     fourth
                                     quarter of
                                     2018.

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SOURCE Ryerson Holding Corporation